We’re learning more every day about the novel coronavirus that’s wreaking havoc on our society, giving us additional insight on how to protect ourselves.
For example, it’s now common knowledge that the virus spreads person-to-person through close contact, but evidence also suggests that COVID-19 can remain airborne for hours in indoor spaces. It can even travel through HVAC systems. As a result, the longer people stay in an enclosed environment, the greater the potential transmission risk.
Indoor airborne transmission is causing problems in a variety of industries. Bars, restaurants, and retail establishments are riskier environments for staff and customers, while some office workers also feel unsafe returning to the job site.
The good news in South Florida is that we’re well-positioned to take advantage of the mild winter weather and can make better use of outdoor spaces than pretty much any other location in the country.
The restaurant industry is an excellent example of how to use outdoor space to keep a business open. The more fortunate restaurants have patios, and others are developing them, allowing patrons to stay outdoors while enjoying food and drinks.
One drawback is that patios can get crowded, with tables next to each other allowing for transmission to occur between diners.
We’re seeing some businesses create proactive solutions to this issue by expanding their outdoor dining spaces. While extending a patio often relies on cities making exceptions or changing their laws, municipalities worldwide are doing just that to encourage a safer environment for restaurant-goers.
Open-air shopping centers also allow for a safer experience for consumers with fewer restrictions on the number of people who can be in an area at one time. This additional flexibility assists businesses as they attempt to stay afloat during this difficult time.
New York City is taking the outdoor shopping experience to a new level by allowing retail shops to extend into outdoor spaces. As the holidays approach, as many as 40,000 small businesses could begin using nearby outdoor areas.
The weather in South Florida is clearly better than winter in New York, so it makes sense for businesses and commercial property owners to begin exploring the concept of open storefronts to allow shoppers to socially distance.
It isn’t just retail spaces that can use the outdoors to their advantage in South Florida, as offices can also shift certain meetings and tasks outside.
The easiest way to accomplish this is by using courtyards and nearby parks when face-to-face interaction is necessary. This trend isn’t new, either, as 79% of new construction in Manhattan since 2010 features outdoor space.
If your building has some outdoor space, like a usable rooftop or a place to build a terrace, property owners can consider renovating to create a brand-new amenity for tenants. Even though COVID-19 likely won’t last forever, the addition of outdoor space can attract renters well into the future.
Staying outdoors isn’t always feasible, as there are situations where the weather won’t cooperate or people have sensitive information that they aren’t comfortable discussing in a public setting. There’s also the fact that businesses are paying for these buildings, so they’ll want to use them.
That’s fair, and there are ways to make interior offices, stores, and restaurants safer for all who visit. Of course, cleaning and sanitizing help reduce the spread of the virus, but what about the air?
Encouraging employees and customers to maintain distance and using physical shields are part of the equation. However, as mentioned earlier, aerosols can linger in the air for hours and spread through HVAC systems.
One solution is to add ultraviolet lights to the interior of the building’s ductwork. In doing so, 99.9% of seasonal viruses will die before circulating through the building, keeping people safer from this type of transmission.
Morris Southeast Group is on top of the newest retail, dining, and office space trends, ensuring that you can make the necessary adjustments to thrive in the current business landscape. A little flexibility can go a long way, and maximizing outdoor space usage, can be a novel way to attract consumers and tenants while keeping them safer.
Call us at 954.474.1776 to learn how Morris Southeast Group can assist you. You can also reach out to Ken Morris directly at 954.240.4400 or firstname.lastname@example.org.
COVID-19 is causing challenges in all walks of life, as everything from going to the grocery store to interacting with friends is different than it was this time last year. And as coronavirus cases increase across the country in a winter wave, we could see even more employees avoiding the commute and working from home.
But how long will it last?
There are some promising vaccines in the works. A collaborative effort between Pfizer and BioNTech and a shot produced by Moderna show excellent preliminary results, and the vaccines could start to be available before the end of the year.
However, there are significant supply limitations and logistical hurdles to overcome before seeing a roll-out to the masses. The pandemic is spiking again, and it’s going to get worse before it gets better. Still, we could see a return to “normalcy” as soon as the second quarter of 2021, with many people returning to the office before then.
Many workers want to return to the office, and offices will once again become a more in-demand commodity, albeit in a slightly different form.
Here’s one look at what we might expect regarding remote work, in-person work, and office space in the coming months.
Far more people are working from home than in pre-pandemic days, of course. A report by the Federal Reserve Bank of Dallas suggests that close to 50% of employees were working from home at least part of the time by August 2020.
The number of daily commuters has been increasing monthly since the first lockdowns, as we get more used to the new normal. However, it’s still nowhere near February’s numbers, when over 73% of employees commuted daily.
The average U.S. worker is now staying home 5.8 days per month, up from 2.4 before the pandemic. And those who occasionally telecommuted before COVID-19 are working from home for about 11.9 days each month.
What do these numbers mean?
In short, more people are working from home, and there is reason to believe that the trend will continue into 2021. There’s also a chance that the remote work revolution lasts—in part—indefinitely.
According to Gallup’s research, those who work from home for between one and four days each week are the most engaged and produce the best results.
Will managers notice this data and make changes to meet employee expectations? Maybe, which will lead to a durable shift in the way we use office space.
Those who own commercial property might see these numbers and worry about the future of their investments. Still, there will always be a need for office space, although we will likely see many companies seeking different things.
For example, many businesses may continue to allow employees to work from home on projects that don’t require collaboration. If a worker would otherwise be sitting in a cubicle or personal office without meeting with anyone, that’s a job that the individual could probably do remotely.
At the same time, there are many situations where face-to-face collaboration makes the process much easier. Some companies could begin looking for offices with large floor plans that make working together while socially distancing more accessible.
Class A office space will also focus more on specific amenities. KBS CEO Chuck Schreiber described these new demands well:
Now, we have the added element of preventing viral transmission, which is being achieved through changing office layouts; increased sanitation; installing barriers like plexiglass between workstations; adding antibacterial surfaces, like copper; erecting signage aimed at reducing crowding; and installing touchless technology to operate equipment in common areas, like elevators and appliances. This additional layer is expected to be a part of office development and operation for the foreseeable future.
Overall, companies will be looking to reduce the chance of airborne and surface COVID transmission in their office spaces in the immediate future. But we could see that trend continue to future-proof structures against novel illnesses in the coming years.
Companies will return to the offices, but they’ll want different things from landlords than before COVID-19. This pandemic has made it evident that we have to work to curb the spread of illness inside the workforce, and businesses will want to keep these practices up to reduce employee sick days and promote good health.
It’ll be up to property owners to adapt to the changing workspace by providing these organizations with the new elements they look for in class A office space.
Morris Southeast Group can assist as you evaluate adapting your office buildings to the new normal. We’ll provide solid advice to lower vacancy rates and attract businesses to your facilities while keeping in mind the capital availability to execute changes and the potential ROI. And if you are looking to lease space, we can find facilities that meet your workforce’s safety and volume needs—remote, in-person, or a likely mix of both.
Call us at 954.474.1776. You can also reach out directly to Ken Morris by phone at 954.240.4400 or via email at email@example.com.
Sunrise, FL; October 26, 2020 – In the teeth of the pandemic, President Ken Morris, SIOR, RPA, of Morris Southeast Group announced one of the best quarters in history for his South Florida commercial real estate services business. In the 3rd quarter this year, the firm completed 151,753 square feet in leases and was awarded new leasing and management assignments totaling an additional 220,000 square feet.
“To say it has been an unbelievable year would be an understatement; however, business goes on. The companies and people we were grateful to serve in recent months represent a mix of essential services and professional services that companies, corporations, and individuals need. It is a strange time to report a record quarter for our practice, yet we are certainly pleased with the results,” said Ken Morris, SIOR.
Recently closed transactions include:
The firm has been hired to manage and lease the Airport Executive Towers located at the
Southwest edge of Miami International Airport, comprised of two office buildings consisting of approximately 170,000 square feet. The Morris team is already hard at work replacing the entire HVAC system in Tower I and repositioning the properties for the new market conditions.
The firm has been hired by BHT Partners to lease the Medical Services Building located at 4101 NW 4th Street in Plantation that consists of 48,560 square feet. The building is located on the campus of Plantation General Hospital.
In addition to the firm’s deal-making successes during the quarter, Adriana Lilly was promoted to Vice President of Morris Southeast Group, Maria Alicia Wild has joined Morris SE as the Tenant Services Coordinator in Miami at the Airport Executive Towers, and Daphne Sullivan has joined the team as Marketing Coordinator.
Ms. Lilly joined the firm in July 2016, shortly after securing her license to sell and lease real estate, after years of working in the hospitality, health, and fitness industries in South Florida. She has been instrumental in growing Morris Southeast Group by sourcing, serving, and closing real estate transactions on behalf of tenants and landlords in Broward and Miami-Dade counties.
For more than 35 years, Morris Southeast Group has been recognized as one of South Florida’s leading providers of commercial real estate services. Located in Sunrise, FL, Morris Southeast Group is a full-service firm specializing in owner and tenant representation, multi-market services, and investment sales in the office, industrial, and retail sectors throughout Miami-Dade, Broward, and Palm Beach Counties.
Further, the firm serves corporations, private investors, and entrepreneurs in various U.S. markets through its membership in the Society of Industrial and Office Realtors® and other professional real estate relationships developed over years of industry networking. For more information, contact President Ken Morris at (954) 474-1776 or visit www.morrissegroup.com.
Technology makes many aspects of residential real estate more accessible, as anyone can go online, select a property, and begin researching. From there, interested parties can schedule tours, check market comps, or even make offers before ever speaking with a person.
Virtual tours make it possible to walk through a property without actually visiting, adding another layer of insight for prospective buyers. The process has become more efficient, and over 44% of home buyers begin their search online.
We’re now seeing similar technology make its way into commercial real estate (CRE), as investors and business owners can evaluate and even purchase or lease assets with minimal human contact.
This has its limitations particular to CRE, however. Online showings and virtual reality tours don’t supply comprehensive market insights or analyze all crucial available data before purchasing. Tech also doesn’t craft a CRE strategy that accounts for a client’s current and prospective needs. This missing information provides immense value—and many buyers will be left without it when shopping exclusively online.
Here are some of the effects technology is having on commercial and residential real estate and where these advances have benefits and limitations.
Online property shopping has become a stable of the residential market, and many websites provide the opportunity to look for a home online. The best known, Zillow, has countless options for home buyers and allows them to get much of the information they require in one place.
At its core, Zillow allows you to search through available residential real estate listings in your area. You can also look at pictures, take virtual tours, and connect with a real estate agent through the platform.
More in-depth features include market reports, housing data, and inventory information, with much of this information presented as easy-to-read graphs. In short, Zillow provides a great deal of knowledge throughout the home-buying process. However, it can’t provide you with real, local insight, such as hidden trends or intangible quality-of-life aspects about a neighborhood; only an excellent real estate agent or more profound research by the buyer can do that.
Redfin, RealScout, Realtor.com, and OpenDoor are similar services that list houses and connect buyers with agents. Most real estate companies and agents have websites with their listings and other information, as well. These websites provide value through the ease with which sellers can list, and the easy access and information they give buyers.
Another innovative residential feature worth mentioning is that OpenDoor and Zillow will buy a seller’s home and then list it on the market. Buyers are purchasing directly from these platforms, in some cases.
Keep in mind that all of these services use local real estate agents and brokers to facilitate the deals. However, in the future, websites like Zillow and OpenDoor will likely begin making more direct sales online, adding an entirely new dynamic to the process.
Technology’s influence on residential real estate is evident, and it is becoming more prevalent in the commercial real estate world.
The most talked-about new platform is Ten-X. It links brokers, buyers, and sellers in the CRE industry, making it easier for these properties to change hands. This end-to-end platform can already facilitate an entire sales process, and it dominates the market—Ten-X is behind 90% of all online commercial real estate transactions.
There are also auctions on the platform, so sellers or brokers will set a starting bid, and interested parties can attempt to purchase it with the highest offer getting the property.
Currently, brokers are still a huge part of the process at Ten-X, at least when it comes to selling. However, buyers can place bids or agree to make purchases directly through the platform. This technology is sure to alter the CRE landscape even further as it becomes more common.
It’s easy to see why investors are considering technology like Ten-X, as it provides a quick look at properties all over the country without having to leave the office. This convenience makes the basics of evaluating commercial real estate more accessible than ever before.
But there is a drawback. Online CRE shopping could lead investors to make snap decisions without considering underlying market conditions and vital data that can make or break a deal’s profitability.
When it comes to finding information relevant to your objectives, there’s no substitute for speaking with a local, human expert on the subject. An algorithm or virtual real estate agent can provide you with data. But figuring out what the numbers really mean—or even knowing which data are crucial for your situation—requires a deeper dive.
The same can be said for commercial tenants, as tech seeks to take on some of the responsibilities of a tenant rep advisor. But no platform will help negotiate a deal, find the exact property to suit a business’s needs, or focus on your interests and understand your situation like an advisor does. And in-depth local knowledge is often the difference between a successful contract and a regretful decision.
Thus, some aspects of this CRE tech trend may leave commercial tenants and investors at a disadvantage.
Morris Southeast Group is excited about this technology and how it will provide CRE clients with greater knowledge and access. And we are already using much of it! But where we—and other highly-qualified advisors—shine is in helping commercial real estate investors and tenants conduct due diligence before signing any agreement.
Our team will gather all relevant data, organize inspections, go over the legal contracts, assess your financial goals to ensure the deal is right, “future-proof” decisions, and quite a bit more. And having a SIOR designee advisor on your side is an immensely valuable asset in many transactions.
To learn more about what Morris Southeast Group can do for you, call us at 954.474.1776. Ken Morris is also available directly at 954.240.4400 or firstname.lastname@example.org.